I believe the arguments of "predictability" and "legal certainty" went out the window when the UAE abruptly introduced its corporation tax in 2023. In my view, the manner in which this tax was suddenly implemented severely undermined confidence in the jurisdiction. What was once a laissez-faire environment has now become burdened with convoluted, complex, and costly compliance requirements, even for small companies qualifying for small business relief. If you disagree with the change and decide to exit the jurisdiction, the process is exceptionally onerous: it typically entails a full, year-long, intrusive, time-consuming, and expensive tax audit for every company, regardless of size. This approach is considerably more draconian than most jurisdictions better known for their heavy-handed, socialist tendencies. Four years ago, I would have completely agreed with this article. But with the self-inflicted corporation tax wound, coupled with the current war in the Gulf, in my view, the appeal of Dubai is effectively over. I believe I'm not alone in this sentiment; expats, investors, business owners, and industry insiders like Nomad Capitalist appear to have reached similar conclusions.
I believe the arguments of "predictability" and "legal certainty" went out the window when the UAE abruptly introduced its corporation tax in 2023. In my view, the manner in which this tax was suddenly implemented severely undermined confidence in the jurisdiction. What was once a laissez-faire environment has now become burdened with convoluted, complex, and costly compliance requirements, even for small companies qualifying for small business relief. If you disagree with the change and decide to exit the jurisdiction, the process is exceptionally onerous: it typically entails a full, year-long, intrusive, time-consuming, and expensive tax audit for every company, regardless of size. This approach is considerably more draconian than most jurisdictions better known for their heavy-handed, socialist tendencies. Four years ago, I would have completely agreed with this article. But with the self-inflicted corporation tax wound, coupled with the current war in the Gulf, in my view, the appeal of Dubai is effectively over. I believe I'm not alone in this sentiment; expats, investors, business owners, and industry insiders like Nomad Capitalist appear to have reached similar conclusions.